we are a low income family our monthly income is about $1300.00 is it possible to be able to pay a mortgage payment on a $60,000.00 home at todays interest rates?Is it possible for low income family to have a mortgage within affordability?
Today's interest rates are still extremely low compared to interest rates of 10 years ago. Depending on where you live, you can look into a State Bond program. If you review my other posting, I keep bringing up State Bond program because they are the best program for low to moderate income families and first time home buyers. They are normally lower than traditional mortgage rates because they are subsidized by state issued bonds. Second reason why they are good is that they allow you to roll your closing costs into the second loan, and normally the second loan will be at the same interest rate than the first. A huge advantage when qualifying for a mortgage payment. There is MI involved, however if you look at the MI payment versus the 2ND loan payment, you might be surprised at the over all payment between the two. Most mortgage brokers will not give this option since they are not able to make as much money on the file, however if you find a mortgage professional with your interest in mind and not looking to make a fast buck, they will present this as an option.Is it possible for low income family to have a mortgage within affordability?
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I would think so. Go talk to a maortgage lender, that's the only way to really know.
Yes, you could take in interest only payment option and pay about 300 a month, based on 6%
Sunday, August 22, 2010
What are the advantages/disadvantages of FHA mortage vs conventional mortgage?
If I have a low credit score, but parents are fronting 20% of the downpayment for a new home - mortgage broker is suggesting applying for an FHA mortgage.What are the advantages/disadvantages of FHA mortage vs conventional mortgage?
Always try conventional financing first. FHA will always charge an upfront mortgage insurance premium that could be avoided with conventional financing.
With a 20% downpayment, there's a good chance that you can qualify for conventional financing, even with weak credit.
FHA loans MUST be run through the FHA underwriting system first under every circumstance. Once that's been done, it's a 5-minute change process to convert it to conventional, and costs nothing extra. And you can start conventional and convert to FHA as well, same deal.
FHA loans pay brokers more than comparable conventional loans, in most cases. That's one factor that might be in play here. FHA is very lenient on credit, so that isn't a bad choice either, if that's what you can get. Any FHA rate offered in excess of 6.5% means you need to find a new, non-greedy broker.coupons face blush
Always try conventional financing first. FHA will always charge an upfront mortgage insurance premium that could be avoided with conventional financing.
With a 20% downpayment, there's a good chance that you can qualify for conventional financing, even with weak credit.
FHA loans MUST be run through the FHA underwriting system first under every circumstance. Once that's been done, it's a 5-minute change process to convert it to conventional, and costs nothing extra. And you can start conventional and convert to FHA as well, same deal.
FHA loans pay brokers more than comparable conventional loans, in most cases. That's one factor that might be in play here. FHA is very lenient on credit, so that isn't a bad choice either, if that's what you can get. Any FHA rate offered in excess of 6.5% means you need to find a new, non-greedy broker.
If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
I am contemplating moving in with girlfriend who owns a nice home with a huge monthly mortgage payment that she can barely pay. She wants me to move in and help with it. I would like to live with her with marriage down the road. I have a great below market apartment that I would lose if I leave and move in with her. If I am paying rent to her but living with her do I get any ownership position? Is there a precendence for an agreement along these lines?If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
In Texas we have community property. The minute you get married you own half of each others stuff. Their are ways to keep some things separate but it is extremely complicated.
We also have common law marriage. There is no time involved. The minute you present yourselves as married then you are. I had a roommate in college that was about to get married when he found he needed a divorce from a previous ';girlfriend'; first. You could get some contract but a good lawyer would have to do it and it would be expensive and complicated and unromantic.
But if all you are is girlfriend/boyfriend then you own no part of this house- you are simply paying rent.If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
If you are not on the original contract then you have no legal rights to the property even if you are ';helping'; to pay for it. Some states have common law marraige laws that would change the terms ofownership if you have lived with each other for 10 years or more. Basically if you help pay now it is just a good faith gesture. If you are willing to help her pay then I would suggest you talk her into selling the house she is in and the two of you go jointly into a better house that you can afford. Not only will it be a better deal financialy but it will put the 2 of you on equal footing.
you need to have her quit claim deed you on to the property then you would have ownership. That would be the easiest way instead of refinancing with both of you on there and it will save you $$$ in closing costs
she would have to add your name to the deed and mortgage documents
No you don't. Personally I would stick with what you got:
http://www.dont-marry.com/
Regards...
If the mortgage has her name on it and not yours, it's ';her'; house. If you marry her, I think theres a way to put you on the mortgage.
In Texas we have community property. The minute you get married you own half of each others stuff. Their are ways to keep some things separate but it is extremely complicated.
We also have common law marriage. There is no time involved. The minute you present yourselves as married then you are. I had a roommate in college that was about to get married when he found he needed a divorce from a previous ';girlfriend'; first. You could get some contract but a good lawyer would have to do it and it would be expensive and complicated and unromantic.
But if all you are is girlfriend/boyfriend then you own no part of this house- you are simply paying rent.If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
If you are not on the original contract then you have no legal rights to the property even if you are ';helping'; to pay for it. Some states have common law marraige laws that would change the terms ofownership if you have lived with each other for 10 years or more. Basically if you help pay now it is just a good faith gesture. If you are willing to help her pay then I would suggest you talk her into selling the house she is in and the two of you go jointly into a better house that you can afford. Not only will it be a better deal financialy but it will put the 2 of you on equal footing.
you need to have her quit claim deed you on to the property then you would have ownership. That would be the easiest way instead of refinancing with both of you on there and it will save you $$$ in closing costs
she would have to add your name to the deed and mortgage documents
No you don't. Personally I would stick with what you got:
http://www.dont-marry.com/
Regards...
If the mortgage has her name on it and not yours, it's ';her'; house. If you marry her, I think theres a way to put you on the mortgage.
If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
I am contemplating moving in with girlfriend who owns a nice home with a huge monthly mortgage payment that she can barely pay. She wants me to move in and help with it. I would like to live with her with marriage down the road. I have a great below market apartment that I would lose if I leave and move in with her. If I am paying rent to her but living with her do I get any ownership position? Is there a precendence for an agreement along these lines?If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
In Texas we have community property. The minute you get married you own half of each others stuff. Their are ways to keep some things separate but it is extremely complicated.
We also have common law marriage. There is no time involved. The minute you present yourselves as married then you are. I had a roommate in college that was about to get married when he found he needed a divorce from a previous ';girlfriend'; first. You could get some contract but a good lawyer would have to do it and it would be expensive and complicated and unromantic.
But if all you are is girlfriend/boyfriend then you own no part of this house- you are simply paying rent.If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
If you are not on the original contract then you have no legal rights to the property even if you are ';helping'; to pay for it. Some states have common law marraige laws that would change the terms ofownership if you have lived with each other for 10 years or more. Basically if you help pay now it is just a good faith gesture. If you are willing to help her pay then I would suggest you talk her into selling the house she is in and the two of you go jointly into a better house that you can afford. Not only will it be a better deal financialy but it will put the 2 of you on equal footing.
you need to have her quit claim deed you on to the property then you would have ownership. That would be the easiest way instead of refinancing with both of you on there and it will save you $$$ in closing costs
she would have to add your name to the deed and mortgage documents
No you don't. Personally I would stick with what you got:
http://www.dont-marry.com/
Regards...
If the mortgage has her name on it and not yours, it's ';her'; house. If you marry her, I think theres a way to put you on the mortgage.
In Texas we have community property. The minute you get married you own half of each others stuff. Their are ways to keep some things separate but it is extremely complicated.
We also have common law marriage. There is no time involved. The minute you present yourselves as married then you are. I had a roommate in college that was about to get married when he found he needed a divorce from a previous ';girlfriend'; first. You could get some contract but a good lawyer would have to do it and it would be expensive and complicated and unromantic.
But if all you are is girlfriend/boyfriend then you own no part of this house- you are simply paying rent.If I live with my girlfriend and partially pay her mortgage with monthly ';rent';, do i get any ownership?
If you are not on the original contract then you have no legal rights to the property even if you are ';helping'; to pay for it. Some states have common law marraige laws that would change the terms ofownership if you have lived with each other for 10 years or more. Basically if you help pay now it is just a good faith gesture. If you are willing to help her pay then I would suggest you talk her into selling the house she is in and the two of you go jointly into a better house that you can afford. Not only will it be a better deal financialy but it will put the 2 of you on equal footing.
you need to have her quit claim deed you on to the property then you would have ownership. That would be the easiest way instead of refinancing with both of you on there and it will save you $$$ in closing costs
she would have to add your name to the deed and mortgage documents
No you don't. Personally I would stick with what you got:
http://www.dont-marry.com/
Regards...
If the mortgage has her name on it and not yours, it's ';her'; house. If you marry her, I think theres a way to put you on the mortgage.
My aunt wants to help me and payoff my house mortgage, will there be a tax coniqence ?
my aunt 95 yrs old just sold her home for 470,000 and will use some of that money to payoff my mortgage of 116,000 and two other bills of mine that are 14,000 each and move in with me so i can take care of her, she has also named me the trust of her estate, she and I would like to keep the IRS from getting in our pockets as much as possible.My aunt wants to help me and payoff my house mortgage, will there be a tax coniqence ?
It's simple enough to avoid the tax but this needs careful planning. If your aunt has other assets some careful estate planning is essential. CPA's and estate attorneys cost money but if you take the time to find a good one of each it will cost you far less than any tax bill would if you do it wrong.
The simple advice is to let her pay off the mortgage and other bills and file a Gift Tax return (based on what you have said, no tax will be due) but it may cause more tax to be paid on her death. All that achieves is an interest-free loan from Uncle Sam. That is why good advice specific to her situation is well worth the money in this case.My aunt wants to help me and payoff my house mortgage, will there be a tax coniqence ?
There are a lot of different way to go about reducing your and her tax liability. But without more information about her other income and yours, it is difficult to assess. So I agree with the others, you should consult a financial planner. For example, it could be beneficial to have her as the owner of your house. Again, without all the numbers it is difficult to make proper assessment.
My advice on financial planner is to find a fee only advisor instead of ones from big names (like American Express, Prudential etc.) The big name people has bias opinion and want to sell you their products, thus not able to give up subjective advice.
One thing to start with, she can give you $10k a year with no tax consequence to you.
Best wishes.
Your aunt can BUY an interest in your house that will cover your mortgage and the bills. This is not subject to gift tax or income tax. She can then GIVE you up to $12,000 of her share of the house per year with no gift tax consequences. If you are married, she can give you and your $12,000 each per year.
If she is moving in with you the term ';expense reimbursement'; springs to mind. You really should sit down with a good tax preparer/accountant quickly and lay your cards on the table and do some financial planning. It won't cost much and what it does cost will be more than made up by the money you will save in taxes.
It's simple enough to avoid the tax but this needs careful planning. If your aunt has other assets some careful estate planning is essential. CPA's and estate attorneys cost money but if you take the time to find a good one of each it will cost you far less than any tax bill would if you do it wrong.
The simple advice is to let her pay off the mortgage and other bills and file a Gift Tax return (based on what you have said, no tax will be due) but it may cause more tax to be paid on her death. All that achieves is an interest-free loan from Uncle Sam. That is why good advice specific to her situation is well worth the money in this case.My aunt wants to help me and payoff my house mortgage, will there be a tax coniqence ?
There are a lot of different way to go about reducing your and her tax liability. But without more information about her other income and yours, it is difficult to assess. So I agree with the others, you should consult a financial planner. For example, it could be beneficial to have her as the owner of your house. Again, without all the numbers it is difficult to make proper assessment.
My advice on financial planner is to find a fee only advisor instead of ones from big names (like American Express, Prudential etc.) The big name people has bias opinion and want to sell you their products, thus not able to give up subjective advice.
One thing to start with, she can give you $10k a year with no tax consequence to you.
Best wishes.
Your aunt can BUY an interest in your house that will cover your mortgage and the bills. This is not subject to gift tax or income tax. She can then GIVE you up to $12,000 of her share of the house per year with no gift tax consequences. If you are married, she can give you and your $12,000 each per year.
If she is moving in with you the term ';expense reimbursement'; springs to mind. You really should sit down with a good tax preparer/accountant quickly and lay your cards on the table and do some financial planning. It won't cost much and what it does cost will be more than made up by the money you will save in taxes.
Why do some celebrities have mortgages?
In the past couple of weeks, I've read stories about celebrities who have mortgages-- Britney Spears for one, and Micheal Jackson. Apparently, there are quite a few others who also have home loans.
Does anyone know why this is? Why would people who make millions a year chose to get a mortgage instead of paying cash for their homes?Why do some celebrities have mortgages?
Tax purposes-- they can usually claim the payments on their taxes if they use the house for entertaining, security, etc.Why do some celebrities have mortgages?
The word is taxes. The more money you make the more money you have to pony up. And besides britney probably needed the cash for paying off her attorney fees. And as for ';Wacko Jacko'; ,well, let's not go there.
Owning a home is a great way to get tax savings .. also you can invest in other things that could make you a lot more with that liquid cash... Also large estates are not sold very fast and the value can decrease by hundreds of thousands of dollars. I currently have a client that purchased a home valued at 3,980,000.00 for 3,000,000. Seller can now move with the cash to reinvest either in real estate or investments...
we often do it to save on taxes babe
Many of them don't own their homes, they just rent houses and move around a lot. I think that might be what they mean by that. Also if they have financial trouble they would do what anyone does and get a loan on their home. They are also not all as rich as you think, many of them have money but it is tied up and they can't actually spend it.
Does anyone know why this is? Why would people who make millions a year chose to get a mortgage instead of paying cash for their homes?Why do some celebrities have mortgages?
Tax purposes-- they can usually claim the payments on their taxes if they use the house for entertaining, security, etc.Why do some celebrities have mortgages?
The word is taxes. The more money you make the more money you have to pony up. And besides britney probably needed the cash for paying off her attorney fees. And as for ';Wacko Jacko'; ,well, let's not go there.
Owning a home is a great way to get tax savings .. also you can invest in other things that could make you a lot more with that liquid cash... Also large estates are not sold very fast and the value can decrease by hundreds of thousands of dollars. I currently have a client that purchased a home valued at 3,980,000.00 for 3,000,000. Seller can now move with the cash to reinvest either in real estate or investments...
we often do it to save on taxes babe
Many of them don't own their homes, they just rent houses and move around a lot. I think that might be what they mean by that. Also if they have financial trouble they would do what anyone does and get a loan on their home. They are also not all as rich as you think, many of them have money but it is tied up and they can't actually spend it.
If a house is titled in the estate of and it forecloses who is responsible for the mortgage owing?
The house was willed to a beneficiary who will not be approved for a mortgage. She has resided in the home and paid the bills/mortgage for 10yrs but is now having difficulty. The home is going to be transferred to the estate of and we were informed if unable to get a mortgage house needs to be sold. What will happen if she cannot continue paying mortgage? who will be responsible? There is no $ in the estate just a house and $77000 mortgage.If a house is titled in the estate of and it forecloses who is responsible for the mortgage owing?
The estate. More than likely the house will be sold, the loan will be satisfied (paid off) and the profit of the sale (if there is one) will become part of the estates holdings.If a house is titled in the estate of and it forecloses who is responsible for the mortgage owing?
The house will accrue to the estate of the deceased, and the process of foreclosure, if needed, will occur as if the deceased were still alive. The personal representative of the estate gets to handle whatever is tossed in his direction.
She'll have to sell the house, pay off the mortgage, and keep what's left, if anything.
The foreclosure will proceed regardless of who holds control of the estate. The executor of the estate will have to handle the proceedings. Is the executor responsible for the debt? NO. It may be in the executors best interest to pursue selling the home and distributing the proceeds, if any.
The estate. More than likely the house will be sold, the loan will be satisfied (paid off) and the profit of the sale (if there is one) will become part of the estates holdings.If a house is titled in the estate of and it forecloses who is responsible for the mortgage owing?
The house will accrue to the estate of the deceased, and the process of foreclosure, if needed, will occur as if the deceased were still alive. The personal representative of the estate gets to handle whatever is tossed in his direction.
She'll have to sell the house, pay off the mortgage, and keep what's left, if anything.
The foreclosure will proceed regardless of who holds control of the estate. The executor of the estate will have to handle the proceedings. Is the executor responsible for the debt? NO. It may be in the executors best interest to pursue selling the home and distributing the proceeds, if any.
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